Marketing in SMEs Some ideas and experiences Small

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Marketing in SMEs Some ideas and experiences Small Business Center 26. 10. 2012 Seppo Rantalainen Marketing in SMEs Some ideas and experiences Small Business Center 26. 10. 2012 Seppo Rantalainen

SMEs and marketing… • What?  – Traditional marketing mix; 7 p’s • Product/service • PriceSMEs and marketing… • What? – Traditional marketing mix; 7 p’s • Product/service • Price • Place • Promotion • People • Process • Physical evidence

Some topics … • Marketing in Finnish small and medium size firms – What does itSome topics … • Marketing in Finnish small and medium size firms – What does it mean in practice? Marketing efforts? Marketing tools?

SMEs and marketing in practise • Limited resources – Human effort = most often no expertsSMEs and marketing in practise • Limited resources – Human effort => most often no experts – Budgets => no big money in marketing – Market research? => expensive missing – Main efforts in advertising • Visibility • Segmentation or lack of it • Unclear message – Short term planning => not enough for long term success

SMEs and marketing in practise. . .  • SMEs and brands – What is theSMEs and marketing in practise. . . • SMEs and brands – What is the brand? – Where it is?

SMEs and marketing in practise. . .  • SMEs and brands …globally SMEs and marketing in practise. . . • SMEs and brands …globally

Brands … and their value… A definition of the brand: The meaning of the brand; howBrands … and their value… A definition of the brand: The meaning of the brand; how about SMEs?

Brands and their elements… Four basic elements of the brand: Brands and their elements… Four basic elements of the brand:

Smes and their products … • What smes are selling? – differentiation; pricing, quality, customization, flexibilitySmes and their products … • What smes are selling? – differentiation; pricing, quality, customization, flexibility in production, etc — Customer needs; quick changes and very quick reaction; proactivity — Packages; core product + several services; networking, partnerships

Smes and their products …Segmentation, right customer groups Segmentation of potential Customers - Different behaviour, sameSmes and their products …Segmentation, right customer groups Segmentation of potential Customers — Different behaviour, same needs — Different pricing, features, desing etc

 Smes and pricing … • Business models – The place and role in the valuechain Smes and pricing … • Business models – The place and role in the valuechain – What is the core product or is it service? Ponsse: — Forest machines manufacturing — Very essential service and spare parts deliveries => expensive machines + effective and real-time service => profitable pricing

Smes and promotion … • Advertising – New medias; FB, Twitter, Event marketing, mailing lists –Smes and promotion … • Advertising – New medias; FB, Twitter, Event marketing, mailing lists – How about print media/television • Expensive, targeting, focusing on right people – Promotions • Events, sponsoring, social media, • Sport, concerts, art exhibition, others

Smes and promotion … Small Business Center: - In St Petersburg 16 years - Small customerSmes and promotion … Small Business Center: — In St Petersburg 16 years — Small customer base — Seeks for growth — Mainly with partners — Fin. Ec — incubator

Smes and promotion …sales efforts Sales organisation in Russia Reliable service partners Smes and promotion …sales efforts Sales organisation in Russia Reliable service partners

Promotion …sales efforts Sales is critical - Personal interaction - SMEs – is it possible? -Promotion …sales efforts Sales is critical — Personal interaction — SMEs – is it possible? — Big customers — Slow decision making process

Smes and promotion … event marketing Sport, music, art, etc - partnerships - SMEs?  Smes and promotion … event marketing Sport, music, art, etc — partnerships — SMEs?

Smes and promotion …event marketing 1. Experience orientation 2. Interactivity 3. Self-initiation 4. Dramaturgy. The nameSmes and promotion …event marketing 1. Experience orientation 2. Interactivity 3. Self-initiation 4. Dramaturgy. The name of the event

SMEs and place … • Where and when SMEs can sell? – The place = distributionSMEs and place … • Where and when SMEs can sell? – The place => distribution • In St Petersburg? – In the city – really expensive – Web shops – always open • How about services? Incubator for technology firms

SMEs and people … • SMEs the most critical resource – Expensive, difficult to find andSMEs and people … • SMEs the most critical resource – Expensive, difficult to find and recruite; why? Salespeople!

SMEs and people … SMEs - How to build the relationships? SMEs and people … SMEs — How to build the relationships?

SMEs and processes … interaction with consumers New technology – or services? SMEs and processes … interaction with consumers New technology – or services?

SMEs and processes … interaction with consumers Which is important for consumers – technology or services?SMEs and processes … interaction with consumers Which is important for consumers – technology or services?

SMEs and processes … interaction with consumers Environmental Issues - SMEs? SMEs and processes … interaction with consumers Environmental Issues — SMEs?

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